Research paper - Hsiung Chien Chiu Hsiung Chien Chiu Hsiung...

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Hsiung Chien Chiu Hsiung Chien Chiu Hsiung Africana Studies 0.12 Professor L. Day May 6, 2009 Sub-Saharan Africa Debt Relief In Sub-Saharan Africa, Debt has ravaged the continents for more than two decades. During the 1970s, much of African countries debt was building up because banks and international agencies were lending money recklessly hoping to benefit from the loans in the long term. Borrowers soon realized that they were not benefiting from the loans as money started to vanish into failed infrastructure projects, corrupt schemes, and imprudent investments. Many blame the debt toward the corrupted and irresponsible leaders, who took out loans and used it for their own personal gain with the full knowledge and supports from the lenders. By 1980s, developing countries debt as a whole was around US$800 billion. In 1996, African countries debt alone was around US$230 billion. Sub-Saharan Africa contains 34 of the 41 most heavily indebted counties that has been worst affected. The World Bank and the IMF are working with the developed countries to help cancel most of African nation’s debt. Debt crisis in Sub-Saharan Africa has negatively impact on poverty and healthcare which encouraged the international countries to cancel the debt in the future. In developing countries, poverty is the main issue that is affecting their developments. Debt affects their economic growth because money is spent on repaying their debt than generating jobs and improving their living conditions. People live in poor housing, unsanitary places and drinking unsafe water. It undermines economic and social progress. In the indebted countries, poor people benefit the least because they end up paying the bills with their limited resources diverted to debt servicing. It affects million of small farmers, who have faced
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Hsiung devastated cuts in credit and agricultural services. This makes African people to leave the countryside and into the urban areas to find jobs. By 2003, 36.2% of the population of Sub- Saharan Africa lived in urban areas. 1 This has caused problem in the agricultural sector and causing food shortages. According to Logie and Rowson, 1.3 billion people all over the world live under US$1 per day. 2 This show how many poor people are affected because of the large amount of debt that their country own. Debt is making the people and the country poorer, if debt was canceled, most of the country might begin to see recovery and prosperity in the future. Along with poverty, health is a single most important issue that impact on the development in Africa today. Poverty in African countries affects health to hundreds and millions of people. These include lack of access to safe drinking water, lack of adequate sanitation, and lack of access to health services (Ibid. 277-278). These have leaded many Africans to become sick and vulnerable while African government continues to use healthcare money to pay their
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This note was uploaded on 10/19/2011 for the course AFRICAN ST 0.12 taught by Professor during the Spring '09 term at CUNY Brooklyn.

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Research paper - Hsiung Chien Chiu Hsiung Chien Chiu Hsiung...

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